QRxPharma scores Canadian licensing deal for MoxDuo

QRxPharma (ASX:QRX) has secured a potentially lucrative licensing deal covering the Canadian market for its pain relief drug, MoxDuo IR, which is currently awaiting marketing approval in Canada and the US.

Canada's Paladin Labs has negotiated the exclusive rights to distribute the dual-opioid formulation in its home market.

In return, QRxPharma will receive US$500,000 ($490,000) up-front, and be entitled to up to US$25 million in milestone payments as well as “tiered double-digit” royalties on sales, the company revealed.

Paladin Labs has also agreed to assume responsibility for the New Drug Submission (NDS) with Canadian regulators, plus all product launch costs and ongoing sales and marketing efforts.

MoxDuo IR is the immediate release version of QRxPharma's patented formulation of morphine and oxycodone.

QRxPharma will retain all Canadian rights to the controlled release and intravenous variants still in clinical development.

QRxPharma is also in the process of applying for US FDA clearance for MoxDuo IR, but in June suffered a setback after the agency issued a Complete Response Letter requesting further data on safety and effectiveness.

But the company subsequently learned it may be able to use existing trial data to satisfy the FDA, and now expects a decision on its IND application in mid-213.

Paladin Labs was the pharmaceutical company behind November's multi-market distribution and licensing deal with Immuron (ASX:IMC) covering Travelan, an OTC preventative treatment for traveller's diarrhoea. This deal is worth up to C$115.5 million ($115.7 million).

QRxPharma (ASX:QRX) shares climbed 12.59% after the deal was announced, to reach 0.760 by around 2pm on Wednesday.